Green ICT drivers and inhibitors perceived by the Czech SMEs

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1 Green ICT drivers and inhibitors perceived by the Czech SMEs Alena Buchalcevova, Libor Gala Department of Information Technologies University of Economics, Prague, Czech Republic Abstract: With regard to minimizing negative ICT impacts, a number of Green ICT initiatives have been raised. This article presents selected results of a survey conducted in the Czech SMEs that show which drivers and inhibitors influence Green ICT diffusion. First, drivers and inhibitors of Green ICT diffusion are established. Then, the survey results are discussed. Key words: Green ICT, survey, SMEs, drivers, inhibitors 1. Introduction An increasing role of information and communication technologies (ICTs) in the society brings along also negative aspects (Pettey, 2007; Webb, 2008). At first glance e-waste seems to constitute a problematic area in this matter, mainly due to an accelerated innovation cycle of ICT. However, as to the OECD (2010) it is own use of ICT that represents the heaviest negative impact on the environment, followed by ICT production. With regard to minimizing negative ICT effects, a number of initiatives have been raised that strive to incorporate the principles of sustainable development also in ICT. Even though, there exists certain disunity in the terminology of sustainable ICT, as for example Green IT, Green IS (Boudreau, Chen & Huber, 2008), Green of IT, Green by IT (Lee, 2008) or Sustainable IT (McWilliams & Siegel, 2001). When applying the principles in a business environment it is possible to exploit the term Green ICT defined by OECD as ICT with better environmental performance than previous generations (direct impacts) and ICT that can be used to improve environmental performance throughout the economy and society (enabling and systemic impacts) (OECD, 2010). While most OECD countries implemented government programmes and business initiatives, which responded to the increasing trend of negative ICT impacts, the Czech Republic on the other hand did not conduct any Green ICT programme according to OECD research (Reimsbach-Kounatze, 2009). Since the research was carried out more than three years ago, we decided to analyse the current state of promoting Green ICT principles in the Czech SMEs. The goal of this article is to present selected results of the survey in the Czech SMEs that show which drivers and inhibitors influence Green ICT diffusion in the Czech SMEs. Another part of the survey is presented in Gala, L., & Buchalcevova, A. (2012). The following section sets out the fundamental basis for establishing those factors that have both positive as well as negative impact on Green ICT adoption. The third section demonstrates the results of our survey conducted out of a sample of the Czech SMEs. 2. Research metodology According to Murugesan (2010), Green ICT is a widely adopted initiative in most of the large companies worldwide. However, Small and Medium Enterprises (SMEs) could greatly benefit from adopting Green ICT practices. At the same time, they are constraint from moving to Green ICT adoption in several areas (Marmaridis & Unhelkar, 2010). As SMEs in the European Union are absolutely prevailing and moreover receive a significant support of investment for their ICT innovation from the European Social Funds, we decided to focus exclusively on Small and Medium Enterprises (SMEs) in our research. Enterprises that are examined in this paper, play the role of a customer of ICT sector, i.e. they are situated in the phase of ICT use in terms of ICT lifecycle viewpoint. In compliance with international surveys (Molla, Pittayachawan & Corbitt, 2009; Molla, Deng & Corbitt, 2010), Green ICT diffusion is influenced by several factors divided into two main groups: JOURNAL OF SYSTEMS INTEGRATION 2013/2 43

2 ALENA BUCHALCEVOVA, LIBOR GALA Drivers that facilitate Green ICT diffusion consisting of following drivers Clients pressure, Competitors actions, Employees creativity, Global economic crisis, Government incentives, Government regulations, Green movements pressure, Green/sustainability strategy, Industry associations, ICT vendors pressure, Market demand, Product and market strategy, Reducing cost of ICT, Senior management vision, Social acceptance, and Suppliers pressure. Inhibitors that form barriers to Green ICT diffusion consisting of following drivers Absence of enforceable government regulations, Fear of failure, Inadequate skills and training, Lack of business leadership on Green ICT, Lack of government incentives, The cost of Green ICT solutions, The extent of Green ICT adoption in the industry, Unclear business value of Green ICT, Lack of demand, Lack of money, Lack of senior management leadership, Lack of skills/expertise, and Not regarded as a priority. These drivers and inhibitors serve as a starting point for our research as well. We decided to join inhibitors such as Not regarded as a priority, Lack of demand, Lack of money, Lack of senior management leadership, and Lack of skills/expertise into one more comprehensive inhibitor Low level of awareness of Green ICT. Moreover, we extended the concept of drivers and inhibitors in our research by adding Best practices. We believe that best practices can significantly facilitate Green ICT diffusion and also accelerate an outbreak of Green ICT adoption among businesses that do not belong to the group of Innovators and /or Early adopters of innovation (Basl & Gala, 2009). Best practices can thus be considered as a driver of Green ICT. On the other hand, Lack of Best Practices may perform as an inhibitor within companies that are not Innovators and/or Early adopters of innovation, which slows Green ICT diffusion overall or even prevents it from developing directly. On the basis of defined drivers and inhibitors we formulated following research questions. The first question (RQ1) was determined as follows: Are the stated drivers and inhibitors of Green ICT diffusion valid for SMEs in the Czech Republic?. The results may serve as a tool to support the drivers and on the other hand to mitigate or eliminate the effects in case of inhibitors. The second research question (RQ2) evaluated a perception of these drivers and inhibitors depending on whether a company has already applied Green ICT or not. To provide a relevant answer to RQ2 it was necessary to identify whether a company utilizes Green ICT in its management or not (RQ2-p). To obtain relevant data in order to conduct an analysis, a questionnaire survey method was implemented via the Internet. The questionnaire survey was a part of a greater research, which was focused on other aspects of sustainable development in addition to above mentioned research questions. The basic statistical sample (N) was determined based on 2nd and 3rd calls of the Operational Programme Enterprises and Innovations (2010) due to a previous cooperation with subjects included in the programme. Basic contact information was found for each identified subject in the sample, and the companies were subsequently asked by to fill in an electronic questionnaire. Data collection was carried out in November 2011 in a 10-day period. Those that did not fill in the questionnaire within the defined time frame were asked again. Data collection finished on the 24th of November, Out of the total 294 (n) sent appeals, 47 messages were returned as undeliverable (16%), 35 respondents refused to participate (11.9%) and 18 answers (6.1%) could not have been identified probably constituting spam. Altogether, 61 replies were obtained and further processed, which represents a response rate of 20.7%. 3. Research results Basic data presenting the results of first research question (RQ1), where n=61, are depicted in the Figure 1 showing which factors support the adoption of Green ICT practices from the respondent s point of view, i.e. determines an agreement with defined drivers. We can see that Reducing Cost of ICT represents the most frequently quoted factor. This confirms the current trend of an increasing pressure to reduce ICT budget. Unfortunately, this research does not reflect an impact of economic uncertainty and crisis when evaluating the driver. Nevertheless, this aspect also influences Green ICT diffusion into businesses. Regarding the impact of drivers, the internal factors (e.g. already mentioned Reducing Cost of ICT driver but also Green/Sustainability strategy) belong to an important category within companies, which indicates that businesses do realize possible negative effects of ICT. 44 JOURNAL OF SYSTEMS INTEGRATION 2013/2

3 GREEN ICT DRIVERS AND INHIBITORS PERCEIVED BY THE CZECH SMES Fig. 1: Drivers of Green ICT diffusion perceived by the Czech SMEs Fig. 2: Inhibitors of Green ICT diffusion perceived by the Czech SMEs Comparing the values reached in the drivers section of our research with the results of international surveys (Molla, Pittayachawan & Corbitt, 2009; Molla, Deng & Corbitt, 2010), the quoted percentage of each driver indicates a much lower value within the Czech SMEs. For example, considering Reducing Cost of ICT driver, this difference accounts for more than 30 percentage points in favour of foreign JOURNAL OF SYSTEMS INTEGRATION 2013/2 45

4 ALENA BUCHALCEVOVA, LIBOR GALA companies, Green/Sustainability strategy driver reaches a difference of 59 percentage points and Social acceptance driver differs from the international result by more than 64 percentage points. On average, the Czech SMEs show a lower score of approximately 38 % across all the other drivers. The only exception comprises IT vendors' pressure incl. ICT trends driver, where the Czech enterprises assign it a higher value of about 17 percentage points. In our opinion, this fact is caused by the cultural characteristics of population in the Czech Republic (Hofstede & Minkov, 2010). On the contrary, not even a single respondent considers Government regulation as an applicable driver whereas the value awarded to this driver abroad constitutes 57%. We believe that it is because the Czech government does not pay a sufficient attention to this matter in the official documents, as pointed out also in the research Reimsbach-Kounatze (2009). Figure 2 presents which factors are perceived as main inhibitors of Green ICT adoption. The absolutely prevailing factor constitutes Low level of awareness of Green ICT (61%), which is in compliance with a poor emphasis on Green ICT in national strategies and government documents. Other factors are represented by substantially lower percentage values. The second most frequently quoted factor Unclear business value of Green ICT was ranked as second in the international survey as well (Molla, Pittayachawan & Corbitt, 2009) with 48%, while The cost of Green ICT solutions took the first place accounting for 71%. Concerning Absence of enforceable government regulations, (Molla, Pittayachawan & Corbitt, 2009) indicates 33% of affirmative responses while in our survey none of the respondents mentioned this factor. It may be connected with a significant resentment to regulatory actions and also with an insufficient extension of these actions in the Czech Republic compared to other countries. Overall, the comprehensive result of the first research question (RQ1) Are the stated drivers and inhibitors of Green ICT diffusion valid for SMEs in the Czech Republic?, shows that SMEs in the Czech Republic perceive the defined drivers and inhibitors but to a limited extent in comparison with international surveys (Molla, Pittayachawan & Corbitt, 2009; Molla, Deng & Corbitt, 2010). Fig. 3: Perception of drivers depending on whether companies use Green ICT in their management or not 46 JOURNAL OF SYSTEMS INTEGRATION 2013/2

5 GREEN ICT DRIVERS AND INHIBITORS PERCEIVED BY THE CZECH SMES To obtain relevant answers to the question RQ2, it was necessary to determine the number of companies using Green ICT in the company s management (RQ2-p). By evaluating direct as well as supportive questions we have found out that 26 respondents, i.e. 43% utilize Green ICT in the company's management. We believe that this number represents quite a low percentage because in our opinion businesses should be in accordance with Directive 2008/98/EC of the European Parliament and of the Council of November 19th, 2008 on waste and repealing certain directives (European Parliament, Council, 2008) at least in the end of ICT use. Figure 3 illustrates the perception of drivers depending on whether companies use Green ICT in their management or not. According to Figure 3, the perception of Reducing cost of ICT factor is independent on the already applied adoption of Green ICT in a company. On the contrary, Green/sustainability strategy, Senior management vision, Market demand, Clients pressure, Competitors actions and Employees creativity drivers are awarded a greater importance among enterprises that already utilize Green ICT practices. A mixture of these drivers suggests that companies that have already incorporated Green ICT into their management system do realize a complexity and also an interdisciplinary character of this matter not related only to information technologies themselves, but also to a recognition of Corporate Social Responsibility (Doucek, 2011). Figure 4 shows the perception of inhibitors depending on whether companies utilize Green ICT in their management or not. According to Figure 4, Low level of awareness of Green ICT is perceived as a strong inhibitor in enterprises that have not implemented Green ICT practices yet (41%) as opposed to companies that already use Green ICT practices (20%). Further, companies that have already incorporated Green ICT in their management sense a greater perception of Cost of Green ICT solutions factor (11%) compared to 3% of those enterprises without Green ICT practices. Lastly, Inadequate skills and training and Unclear business value of Green ICT are perceived as important inhibitors in businesses that do not use Green ICT practices Fig. 4: Perception of inhibitors depending on whether companies use Green ICT in their management or not On the whole, the result of our second research question (RQ2), which sought to determine whether there exist a difference between perceiving drivers and inhibitors in enterprises with Green ICT implemented in their management structure and companies with no adoption of Green ICT at all, JOURNAL OF SYSTEMS INTEGRATION 2013/2 47

6 ALENA BUCHALCEVOVA, LIBOR GALA demonstrates that the perception of drivers as well as inhibitors varies. Key differences were then commented above. 4. Conclusion In this article we presented selected results of the survey focused on Green ICT diffusion in the Czech SMEs. We focused on the perception of drivers and inhibitors that influence Green ICT diffusion. The survey confirmed that defined drivers and inhibitors of Green ICT diffusion are also valid for SMEs in the Czech Republic. However, they are perceived to a limited extent in comparison with the international surveys. The result of the second research question (RQ2) whether there exist a difference in the perception of drivers and inhibitors within enterprises that use Green ICT in their management and the others that do not, confirms that the perception of both drivers and inhibitors varies. The results of the survey support our hypothesis that a lack of Green ICT support in government programmes and a lack of government incentives comprise a real barrier to a broader adoption of Green ICT practices in the Czech companies. Acknowledgment This paper describes the outcome of a research that has been accomplished as a part of research program funded by Grant Agency of Czech Republic grant No P403/11/1899. References BASL, J., & GALA, L., The role of ICT in business innovation. In Doucek P; Chroust G; Oskrdal V (Ed.), IDIMT-2009 (pp ). Linz: Trauner Verlag universitat. BASL, J., BUCHALCEVOVA, A., & GALA, L.,2011. Conceptual Model of Enterprise Information Systems Innovation Impact on Sustainability. In: CONFENIS 2011 (pp. 1 9). Aalborg : CIP.Boudreau, M., Chen, A., & Huber, M. (2008). Green IS: Building sustainable business practices. (pp. 1-45). Available at: DOUCEK, P., Human capital in ICT competitiveness and innovation potential in ICT. In Doucek P., Chroust G., Oskrdal V. (Eds.), IDIMT-2011 (pp ). Linz: Trauner Verlag universitat. EU document, Commission recommendation concerning the definition of micro, small and medium-sized enterprises. Official Journal of the European Union (2003/361/EC) European Parliament, Council,, Directive 2008/98/Ec of the European Parliament and of the Council of 19 november 2008 on waste and repealing certain directives. Available at: GALA, L., & BUCHALCEVOVA, A., Green ICT in Czech SMEs: Exploratory Study. ECON'12, p ISSN GALA, L., & JANDOS, J., IT technological architecture impact on technological IT infrastructure flexibility: Case of the Czech Republic. In Creating Global Competitve Economies (A 360 degree Approach) (p ). Norristown: IBIMA. HOFSTEDE, G. J., & MINKOV, M., Cultures and organizations, software for the mind. (3rd ed.). London,England: Mc Graw Hill. LEE, H. J., Green management and green IT, Journal of Electronics Engineers, vol. 35, pp , MARMARIDIS, I., & UNHELKAR, B., Collaboration as a Key Enabler for Small and Medium Enterprises (SME) Implementing Green ICT In: Unhelkar, Bhuvan. Handbook of Research on Green ICT. IGI Global ISBN13: Mc WILLIAMS, A. & SIEGEL, L, Corporate Social Responsibility: A Theory of the Firm Perspective, Academy of Management Review, 26(1), , 2001 MOLLA, A., PITTAYACHAWAN, S., & CORBITT, B., Green IT Diffusion: An International Comparison. Green IT Working Paper Series, Melbourne, School of Business Information Technology, ISBN JOURNAL OF SYSTEMS INTEGRATION 2013/2

7 GREEN ICT DRIVERS AND INHIBITORS PERCEIVED BY THE CZECH SMES MOLLA, A., DENG, H., & CORBITT, B., IT for green: a framework for assessing the capability of the IT industry. Green IT Working Paper Series, Melbourne, School of Business Information Technology, ISBN MURUGESAN, S., Strategies for Greening Enterprise IT. In: Unhelkar, Bhuvan. Handbook of Research on Green ICT. IGI Global ISBN: OECD, Greener and Smarter ICTs, the Environment and Climate Change, 2010, OECD Report Operational Programme Enterprises and Innovation, Ministry of Industry and Trade of the Czech Republic. Available at: PETTEY, C., 2007, Apr. 26. Gartner estimates ICT industry accounts for 2 percent of global CO2 emissions. Available at: REIMSBACH-KOUNATZE, Ch.,2009. Towards Green ICT Strategies. Assessing policies and programmes on ICT and the environment. OECD Digital Economy Papers No OECD Publishing WEBB, M. The Climate Group, Smart 2020: Enabling the low carbon economy in the information age. Available at: website: JEL Clasification: M15, Q50 JOURNAL OF SYSTEMS INTEGRATION 2013/2 49